prometheus - haas school of businessprometheus: next generation h 2 storage 1. faster 2. lower...

PrometheusBringing safe & efficient

hydrogen storage to humanity

Team receives $8 million in funding!

2

Jeffery Urban Eun Seon Cho Anne Ruminski

With commitments from leading car and stationary-power manufacturers…interest [in hydrogen] is once again swelling in this carbon-free technology. Julie Chao, LBNL

Hydrogen is a game-changer

3

Range208 miles

312 miles

Refueling Time

5 – 10 hours

5 minutes

H2

Hydrogen offers many advantages

4

✓ Has multiple uses: - transportation - electricity grid - industry

✓ Can be stored long term

✓ Potentially better for the environment than alternatives

Source: IEA 2015 technology roadmap – Hydrogen and Fuel cells

…But concentrating H2 is difficult

Hydrogen is the lightest element

on earth

- 253°C (- 423°F)

700 bar (10,000 PSI)

High pressure storage is dangerous

Hydrogen is the lightest element

on earth

700 bar (10,000 PSI)

Potential of high pressure rupture of tank

Metal hydrides store H2 as solid

7

Solid storage is safer and more dense

Metal (e.g. Mg, Al, Li)Metal Hydride

(M-H)

Prometheus: next generation H2 storage

1. Faster

2. Lower Temperature

3. Lower Pressure

Nanotechnology

8

Lower pressure, safer storage

9

Compressed H2

• High pressure (700 bar)

• Flammable & explosive

• Gas leak – energy loss

Lower pressure, safer storage

10

Prometheus • Lower pressure (15 bar)

• Safer

• Less/no gas leaking

Compressed H2

• High pressure (700 bar)

• Flammable & explosive

• Gas leak – energy loss

Smaller volume

11

Prometheus Compressed H2 (700 bar)

Liquid H2Other metal hydrides

Smaller volume = easier integration + more space

Smaller volume

12

Model S: enabled by modularity of battery pack

Prometheus Compressed H2 (700 bar)

Liquid H2Other metal hydrides

Smaller volume = easier integration + more space

Prometheus Compressed H2 Liquefied H2

Pressure (safety) ✓ x xDesign Modularity ✓ x xH2 stored per volume ✓ x xH2 stored per mass x ✓ ✓

Tank + hydrogen

130-150 kg Prometheus: heavier

120 kg Compressed

28 kg Liquefied

Advantages of Prometheus

Tank + H2 + metal hydride

0 0.5 0.9 1.4 1.8

Prometheus has great potential

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Gravimetric (kWh/kg)

Prometheus – Competitive and Improving

DOE Targets for 2020

Current

0 0.5 0.9 1.4 1.8

Prometheus has great potential

15

Gravimetric (kWh/kg)

Prometheus – Competitive and Improving

DOE Targets for 2020

Current

Volumetric (kWh/L)

Prometheus – Best option

DOE Targets for 2020Current

*Graph values are for overall system weight and volume

0 0.5 0.9 1.4 1.8

Prometheus has great potential

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Gravimetric (kWh/kg)

Prometheus – Competitive and Improving

DOE Targets for 2020

Current

Volumetric (kWh/L)

Prometheus – Best option

DOE Targets for 2020Current

*Graph values are for overall system weight and volume

Pressure (bar)

700 bar 15 bar

15700

✓✖

Automotive is the holy grail

17

Fuel Cell Government

funding

Private investment

Auto Industry Sales $126.9 Billion

51 by 2016 (enough for 13K FCEVs)

44 stations in 2015

DOE H2 & Fuel Cell Technology Funding:

FY 2014 FY 2015 FY 2016 (Request)

92.997

103

10K by 2018179 FCEVs in 2015

…but we have 3 main challenges

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Must replace high pressure systems in vehicles AND

refueling stations

Beating the status quo Deploying in Automotive

Deploying in Automotive will require 2-5 years after technology is proven

…but we have 3 main challenges

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Insufficient Hydrogen refueling infrastructure

Lack of infrastructure

prevents hydrogen vehicle adoption

Pursue Automotive in the future

20

Year 1 Year 2 Year 5: Larger market

So, where do we begin?

21

Cus

tom

er p

ain

poin

ts

Familiarity with Hydrogen

We looked into several sectors and prioritized immediate opportunities

Start where the pain is high

22

Submarines Materials Handling

$28B US gov’t spending on submarines (next 10 years)

$12.2B market for forklifts

Current solutions

Market Size

Value Proposition

Store hydrogen in compressed tanks

Safety & space concerns

Use chemical batteries or compressed H2

Strict emission limits & high operations efficiency

Market Plan - Year 1

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Year 1: Initial stage

Year 2: Proof of concept

Year 5: Larger market

Initial Market: Nuclear Submarines

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Drop-in solution

• Nuclear submarines store H2

• Distribution channel in place

Initial Market: Nuclear Submarines

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Superior value propositionDrop-in solution

✓ Nuclear submarines store H2

✓ Distribution channel in place

• Increased safety

• Space Savings

• Competitive advantage

Initial Market: Nuclear Submarines

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✓ Nuclear submarines store H2

✓ Distribution channel in place

✓ Increased safety

✓ Space Savings

✓ Competitive advantage

Superior value propositionDrop-in solution

Entry Plan:

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• High willingness to pay

>>> License the technology

• Potential funding during proof of concept +• Licensing structure

• Exclusivity clause

?

Market Plan - Year 2

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Year 1: Initial stage

Year 2: Proof of concept

Year 5: Larger market

Proof of concept: Materials handling

Drop-in solution

• Large companies use H2 powered forklifts

• Increased efficiency

• Space savings

Proof of concept: Materials handling

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Superior value propositionDrop-in solution

✓ Large companies use H2 powered forklifts

Proof of concept: Materials handling

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✓ Increased efficiency

✓ Space savings

Superior value propositionDrop-in solution

✓ Large companies use H2

powered forklifts

Entry Plan:

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• Facilitates deployment of hydrogen powered materials handing

• Partnership conditions?

>>> Partnerships

• Compatible with fuel cells

• Low pressure requires less capital expenditures+

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Testing▪Partnership▪Fuelling infrastructure work

Year 1 Year 2 Year 5Licensing

Partnerships

Testing

Licensing

SaferEfficientReversible

Prometheus promises great change

Questions?

Dulce Kadise, MBA

Kevin Wujcik, PhDNorman Su, PhD

Travis Axelrod, MBA Adrián Gómez, MBA

Nikolas Thiessen, MBA

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APPENDIX

Hydrogen stations

37Source: DOE, Alternative Fuels Data Center - http://www.afdc.energy.gov/fuels/hydrogen_infrastructure.html#setbacks

Construction and Setbacks

Setbacks are applicable to a 7,000 psi hydrogen system *1,500 liter liquid hydrogen storage tank +Only pertains to dispensing equipment

• Fire Safety code limits potential locations for hydrogen stations

• Underground storage can resolve the problem but it’s more expensive to implement

• Current Hydrogen vehicle refueling stations cost between $1-9M to build

Safety regulations

▪75 foot buffer between hydrogen storage tank and fill line for fueling stations

▪Lower Flammability Limit: 4% by volume▪Upper Flammability Limit: 75% by volume▪Liquid hydrogen leaks at rate of at least 1% total per day▪500oC Auto-ignition temperature

Rules

Metrics

Incentives for H2 economy

▪Low and Zero Emission Vehicle Research, Demonstration, and Deployment Funding▪Alternative Fuel Tax Exemption, etc…

Research and consumer incentives

Government fleets

▪Vehicle Acquistion and Fuel Use Requirement for Federal/Private and Local Governement Fleets

Cost to store 5 kg of hydrogen

40Calculations: 1. Based on Lab Scale costs = $50/gram x 1000 gram/kg ÷ 6% x 5kg = $4.2M

High Costs at early Stage Lab results:

Industry: $4,000 Lab: $4.2M1

vs.

Compression Storage

Dispenser

CoolingOther

Current H2 cost breakdown ($2.50/kg H2):

60%

Challenges on the path to market

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1.Adapt & expand infrastructure

2.Reduce costs: laboratory to market

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Phase 1: Initial

Research

Phase 2: Secondary Research

Our 20,000 ft view

43Initial Research

▪ Initial brainstorming exercises yielded 20 potential applications:

CategoryHypothesis

# Hypotheses (Nano MgH can be used...)Back-up Power

1 For stationary remote energy storage (ex. telecommunications towers, remote camp grounds, etc.)

2 For portable remote energy storage (ex. military applications, supply power for remote events)

3 To power handheld conusmer electronics4 To provide energy storage for residential applications

Long-duration travel

5 For Space Travel6 For travel by sea: Submarine7 For travel by sea: Boat

Utility services

8 MgH is better suited for utility scale storage than other storage technologies9 MgH has multiple applications for utility storage10 For energy resiliency in the space constrained private sector (ex. Google, Apple, public transit)

Hydrogen production

11 To produce hydrogen (ex. split H2 from water)12 To capture hydrogen from other gas/chemical byproducts (ex. refineries, wastewater

treatment plants, etc.)Freight & Travel

13 To power light-duty vehicles14 To power heavy-duty vehicles and machinery15 To power airplanes

Other areas

16 MgH can be used to capture other gases (ex. CO2, methane, etc.)17 For heat recovery and cooling (ex. leverage excess heat from combined cycle plant)18 To store and utilize hydrogen in non-energy applications (ex. chemical manufacturing,

ammonia, glass production, electronic manufacturing, etc.)19 To produce Nano-magnesium batteries (chemical storage)20 To generate licensing revenue from the nano-material production process

Reducing our Hypotheses

44Initial Research

▪ We used high-level research to categorize 20 potential applications into High, Med, Low attractiveness:

HIGH LEVEL RESEARCH Investigate why people would/wouldn’t use nano-Mg. Answer these questions:

Has anyone spoken about Hydrogen fuel cells in your sub-category?Is there more than one substitute in your sub-category?Does the market benefit from the following characteristics?(a) Durability & Reversibility(b) Design freedom(c) Energy density (a.k.a. energy per weight)(d) Emissions(e) Safety / Stability of storage(f) OtherIs the government invested in developing hydrogen solutions in this sub-category?Is this a monopoly or oligopoly?Would this be a drop-in solution? (i.e. is the infrastructure already established)Why should we pursue this?Why should we not pursue this?

HIGH

1. Portable Energy storage (ex. military) 2. Space Travel 3. Submarines 4. Boats 5. Private sector energy resiliency 6. H2 capture from other gases 7. Heavy duty vehicles (ex. material handling)

MED

1. Remote energy storage 2. Handheld consumer electronics 3. Other utility services (ex. micro-grids) 4. Light-duty vehicles 5. Heat recovery & cooling 6. Pursue Licensing revenue

LOW

1. Residential applications 2. Utility scaled storage 3. To split H2O 4. Aviation 5. Capture other gases (ex. CO2) 6. Store H2 for other industries 7. Nano-Mg chemical batteries

Phase 2: New Converging Criteria

45Initial Research

Category Sub-category Description Grading 0-4 (4=good)

Market attractiveness

Market Size Total Industry Value ($M) – based on total sales or GDP spent on that industry

Market Fragmentation Monopoly, Oligopoly, Competitive Market – barriers to entry

Stability Age of market, main market influencers

Pain points Specific problems that can be solved by hydrogen storage

Ease of entry Size of customers, Sales channels, switching costs

Competitive Landscape Existing competitors & substitutions

Product Market Fit

Clear Need Clear need for nano-Mg

Level of Familiarity Do stakeholders know about hydrogen & metal hydrides?

Technology Fit Time/resources required for our technology to meet customer needs

Deployment System Integration Is this a drop-in solution?

Partnerships required Stakeholder we need to work with in order to succeed

Regulatory Landscape Is this industry highly regulated? Could there be subsidies for us?

Secondary research

Transportation

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Key Insights: ▪ Market size is promising ▪ Every inch counts on a space ship and our product would address this need

▪ Strong push for clean and efficient sources for boats

▪ Different categories of boats would facilitate entry and allow us to experiment

▪ It will be difficult to enter the space industry

▪ Finding the right niche for boats could be challenging

Category Sub-category Space Travel

Boats

Market attractiveness

Market Size

Market Fragmentation

Stability

Pain Points

Ease of entry

Competitive Landscape

Product Market Fit

Clear Need

Level of Familiarity

Technology Fit

Deployment System Integration

Partnerships required

Regulatory LandscapeLegend:

= 4 = 1= 3 = 2 = 0

Initial Research

Secondary research

Utility Electricity

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Key Insights:

Pros: ▪ Potentially large market - very likely to grow in the future

▪ Few competitors

Challenges: ▪ Selling the benefits of the technology

▪ Need for partnerships ▪with machinery manufacturers to bundle our technology, and

▪with Fuel Cell Companies to provide an energy solution

Category Sub-category Por- table

Pri- vate

Heavy Duty

Market attrac- tiveness

Market Size

Market Fragmentation

Stability

Pain points

Ease of entry

Competitive Landscape

Product Market Fit

Clear Need

Level of Familiarity

Technology Fit

Deployment System Integration

Partnerships required

Regulatory LandscapeLegend:

= 4 = 1= 3 = 2 = 0Initial

ResearchSecondary research

Industrial (Hydrogen Waste)

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Key Insights:

▪ Market is huge (industrial hydrogen: $103bn, submarine: $88bn)

▪ Pain point - hydrogen separation/capture from industrial gas and O2/breathable air generation on subs

▪ Submarine perk: space-saving

▪ Drop-in solution ▪ Competition is high in industrial gas landscape

▪ Regulation is high for military applications

Category Sub-category H2 Capture

Sub-marine

s

Market attractiveness

Market Size

Market Fragmentation

Stability

Pain points

Ease of entry

Competitive Landscape

Product Market Fit

Clear Need

Level of Familiarity

Technology Fit

Deployment System Integration

Partnerships required

Regulatory LandscapeLegend: = 4 = 1= 3 = 2 = 0

Initial Research

Secondary research